BOSCH 2022-23 Annual Report Analysis

Sun, 9 Jul

BOSCH has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BOSCH Income Statement Analysis

• Operating income during the year rose 26.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.1% in FY23 as against 12.3% in FY22.
• Depreciation charges increased by 18.9% and finance costs decreased by 58.1% YoY, respectively.
• Other income grew by 18.8% YoY.
• Net profit for the year grew by 17.0% YoY.
• Net profit margins during the year declined from 10.3% in FY22 to 9.5% in FY23.

BOSCH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	117,816	149,293	26.7%
Other income	Rs m	4,015	4,770	18.8%
Total Revenues	Rs m	121,831	154,063	26.5%
Gross profit	Rs m	14,516	18,029	24.2%
Depreciation	Rs m	3,243	3,856	18.9%
Interest	Rs m	289	121	-58.1%
Profit before tax	Rs m	14,999	18,822	25.5%
Tax	Rs m	2,829	4,579	61.9%
Profit after tax	Rs m	12,170	14,243	17.0%
Gross profit margin	%	12.3	12.1
Effective tax rate	%	18.9	24.3
Net profit margin	%	10.3	9.5

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BOSCH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 50 billion as compared to Rs 44 billion in FY22, thereby witnessing an increase of 13.0%.
• Current assets rose 9% and stood at Rs 88 billion, while fixed assets rose 6% and stood at Rs 75 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 163 billion as against Rs 152 billion during FY22, thereby witnessing a growth of 7%.

BOSCH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	106,798	110,051	3.0
Current Liabilities	Rs m	44,460	50,235	13.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	151,758	163,086	7.5
Current assets	Rs m	81,340	88,336	8.6
Fixed Assets	Rs m	70,418	74,750	6.2
Total Assets	Rs m	151,758	163,086	7.5

BOSCH Cash Flow Statement Analysis

• BOSCH's cash flow from operating activities (CFO) during FY23 stood at Rs 12 billion, an improvement of 352.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -12 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs -1 billion net cash flows seen during FY22.

BOSCH Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	2,685	12,137	352.0%
Cash Flow from Investing Activities	Rs m	-311	2,617	-
Cash Flow from Financing Activities	Rs m	-3,831	-12,394	-
Net Cash Flow	Rs m	-1,457	2,360	-

Current Valuations for BOSCH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 483.0, an improvement from the EPS of Rs 412.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 19,739.2, stands at 40.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 26.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	3,995.1	5,062.5
TTM Earnings per share	Rs	412.7	483.0
Diluted earnings per share	Rs	412.6	482.9
Price to Cash Flow	x	27.6	26.4
TTM P/E ratio	x	35.0	40.9
Price / Book Value ratio	x	4.5	4.3
Market Cap	Rs m	478,857	478,388
Dividends per share (Unadj.)	Rs	210.0	480.0

Ratio Analysis for BOSCH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY23, from 1.8x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 156.6x during FY23, from 52.9x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 12.9% during FY23, from 11.4% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 17.2% during FY23, from 14.3% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 8.8% during FY23, from 8.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.8	1.8
Debtors’ Days	Days	48	47
Interest coverage	x	52.9	156.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.2	8.8
Return on equity	%	11.4	12.9
Return on capital employed	%	14.3	17.2

To see how BOSCH has performed over the last 5 years, please visit here.

BOSCH Share Price Performance

Over the last one year, BOSCH share price has moved up from Rs 16,145.3 to Rs 19,739.2, registering a gain of Rs 3,593.9 or around 22.3%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, check out historical annual results for BOSCH and quarterly results for BOSCH)